Two vehicles, Different Insurance Companies

GingerBob_3

My car's insured with Esure. Just bought a second vehicle and insured it with AXA, who want proof of no claims. Esure won't provide the proof unless I cancel insurance with them, or at the end of the term. So now, the vehicle insured with AXA is not insured, since I've been unable to prove no claims. What's the best solution to this one?

agrinnall

You'll have to pay the full premium on one or other car whatever you do, as it would be rare for an insurer to accept a NCD that is already in use on another vehicle. Insuring both vehicles with the same insurer is really the only way to make this happen, and even then many insurers won't do it.

So the answer is to work out which is the most cost effective vehicle to have the NCD on, taking into account the likely admin charges for changes to the existing policy.

Quentin

GingerBob wrote: »

So now, the vehicle insured with AXA is not insured, since I've been unable to prove no claims. What's the best solution to this one?

If Axa have cancelled your policy as you have wrongly claimed NCD you don't have, then you now have a cancelled policy on your history to disclose for ever more when applying for insurance.

If this is the case (they have cancelled), then you will need to inform esure (and any other insurer where you are covered) about this.

GingerBob_3

Quentin wrote: »

If Axa have cancelled your policy as you have wrongly claimed NCD you don't have, then you now have a cancelled policy on your history to disclose for ever more when applying for insurance.

If this is the case (they have cancelled), then you will need to inform esure (and any other insurer where you are covered) about this.

They, AXA, said, if you don't provide NCD proof within 14 days we'll cancel (suspend?) the policy. So I guess the cancellation is because they haven't yet received proof of NCD, not because I was claiming something I didn't have. I expect to have the policy re-instated when proof is forthcoming, one way or another.

Quentin

Did they say "cancel" or "suspend"? (This does sound as though they gave you the required notice and went ahead and cancelled your policy) What happened to your premium?

If they said "cancel" then this is a cancelled policy on your record.

And bad news if so - it remains on your record for ever, and most online insurers won't quote at all.

And if it has been cancelled you do need inform your other insurers immediately - failure to do so will allow them a variety of sanctions, including refusing to pay claims/policy being cancelled/made null and void and treated as if it never existed.

GingerBob_3

I clarified some points (to be honest, I'm making the enquiry on behalf of someone else). Axa have not cancelled the policy, but they've upped the monthly payments to an amount that would be payable without NCD. This has more than doubled the monthly payment, and this will remain in place until such time as NCD can be proved.


It begs the question; why should you be penalised in this way for insuring two vehicles with different companies?

agrinnall

Because NCD is only available to be used once in general. As I said to you in post #2.

GingerBob_3

agrinnall wrote: »

Because NCD is only available to be used once in general. As I said to you in post #2.

But why? How do they justify this restriction?

rudekid48

GingerBob wrote: »

But why? How do they justify this restriction?

It's not a restriction, you just earn 2 lots of NCD in this scenario. Assuming that your friend purchased the AXA policy online, when they entered their NCD there will have been some explanation (or help) explaining what a valid NCD is and more than likely it will have said that a single NCD can only be used on one vehicle at a time.

muppet610

Hi it is a misconception that NCD is in respect of being claim free.


The way insurance companies work is that if you pay an insurance company a premium and you don't claim they will give you a proportion of that premium back (which is the no claim discount).


As you have only paid insurance against one policy, you are only entitled to one set of no claim discount (although some insurer may give you an introductory discount). It is also at the discretion of an insurer as to whether they accept it (eg not all private car policies will accept NCD coming from a commercial vehicle policy).


Some of the most competitive policies as well are also subject to maximum no claims bonus being available. As such if the risk is unacceptable to the insurer, they would have to come off cover by cancelling your policy.


Beware when insuring the vehicle again as you must disclose the enforced cancellation and you will also need to let Esure know about it.


You would be best going through a broker who can give all the advice that you need and can explain the situation to an insurer on your behalf.

losgiganteskid

Furthermore even IF both insurers allowed your NCB on BOTH policies (although it had been only earned on one) if you had an accident/claim on one car would you expect to lose your bonus on both policies ??